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TfL to invite High Court to rule on taximeters

29 May 2014

" As in many other areas of transport and retail services, apps can offer passengers the potential of better and more convenient services, but we must ensure that the highest standards of safety are being met
"

Leon Daniels

TfL's Managing Director of Surface Transport

Transport for London (TfL), which regulates and licenses the taxi
and private hire trades in the capital in the interests of passengers, is to
invite the High Court to rule on whether smart phones that use GPS technology
to measure the time and distance of a journey and then receive information
about fares comply with current law on 'taximeters', which can only be used in
London by taxis.

The rapid pace at which smart phone based technology has been developing in
recent years has led to a need for clarity about what is required in order
for apps to comply with the regulatory framework in London and to ensure there
is a level playing field for all operators.

TfL has listened to the taxi and private hire trades, sought to address the
concerns raised, and is taking the following action:

To avoid any future ambiguity,
TfL will hold a consultation with the trades on what amendments may be
necessary to the regulations on recording particulars of private hire bookings,
including journey destinations, to keep them clear and relevant in a changing
world and to promote public safety

TfL set out its provisional view
that smart phones used by private hire drivers - which act as GPS tracking
devices to measure journey distances and time taken, and relays information so
that fares can be calculated remotely from the vehicle - do not constitute the
equipping of a vehicle with a 'taximeter'.

However, given the level of concern
among the trade, and the fact that some of the legislation in this area is
unclear and able to be interpreted in various ways, TfL is to invite the High
Court to give a binding determination on this issue.

TfL has carried out its largest
ever compliance investigation - scrutinising Uber's record keeping and business
model. TfL has found that Uber meets the current requirements on record
keeping, including in relation to ensuring its drivers hold the relevant
licenses and insurance. TfL remains concerned about certain technical aspects
of Uber's operating model and this is being addressing with the operator.

This wide range of action by TfL is designed to ensure that taxi
and private hire passengers can benefit from new technology whilst being assured
that the highest safety standards are being maintained.

Leon Daniels, TfL's Managing Director of Surface Transport, said: "We welcome
developments that make life easier for passengers. As in many other areas
of transport and retail services, apps can offer passengers the potential of
better and more convenient services, but we must ensure that the highest
standards of safety are being met.

"We have carried out the largest compliance operation in our history to ensure
that the highest standards are being maintained. More needs to be done. We will
consult with the trades to ensure the regulations are kept up-to-date. On the
issue of taximeters, the law is unclear and we have taken a provisional view.
We will be asking the High Court to provide a binding ruling. This is the
sensible approach, and we hope that London's taxi drivers and private hire
drivers and operators will work with us to bring clarity on this issue."